After two years of trying to make their Canadian operations work, Target has decided to pull out of Canada. There’s no need to ask why. After losing 2.1 billion dollars in the Canadian market, pulling out of Canada seems to be the right choice. A better question is, why did Target not thrive in Canada? It’s not like Canada has a lot of successful department stores already. We have no Macy’s. Sears has been going out of business in a lot of cities. So why would a low cost department store not be able to turn a profit? Perhaps Canadians are content with Wal-Mart?
CTV news reports that Canadian Target has 17,600 employees that will be affected by this decision. Currently, Target has 133 locations in Canada, all of which will be closing.
Target’s immersion into the Canadian market was quick seeing as how after two years they already established 133 locations, but somehow their transfer into the Canadian market did not go as planned.
Angela Mulholland for CTV news reports that Canadians were eager and excited when they first learned that Target was going to spread into the Canadian culture two years ago. Obviously that excitement was not sufficient to ensure a healthy growth. Mulholland reports that Canadian Target experienced inventory shortages that led to unhappy customers staring at empty store shelves. Customers claimed that the stores’ products were also more expensive than the products in the American stores.
It seems like the negative turnout was brought on by several factors. Why do you think Target wasn’t successful in Canada? Share in the comments below!
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